The Impact Of Technological Change On Employment: Evidence From A Firm-Level Survey Of Long Island Manufacturers

Recent studies of capital-skill complementarity suffer from several important empirical limitations and a theoretical framework that treats technological change as exogenous. This paper addresses some of these limitations using a new, detailed firm-level dataset on technology usage and labor composition. Based on two-stage estimation procedures, our results imply that technological change leads to a shift in labor composition and compensation in favor of white-collar workers.